A longstanding dispute over unpaid funds and the risk of property foreclosure has resulted in a legal battle between former officers and the Latin American Club of Defiance, Ohio. The conflict centers on allegations that personal funds were used to cover the club’s operating shortfalls, as well as questions about proper notification procedures during a period when the organization was dormant.
The complaint was filed by Margaret Urdiales on March 23, 2022, in the Defiance County Common Pleas Court against the Latin American Club of Defiance, Ohio (LAC) and any unknown officers or members. According to court documents, Margaret alleged that she and her husband Miguel Urdiales had contributed $211,106.20 from their personal finances to sustain the LAC between 2005 and 2021. She further claimed that by 2019 through 2021, the club had no dues-paying members or active trustees and faced foreclosure due to unpaid taxes.
Miguel Urdiales had served as president and statutory agent for LAC until his imprisonment in 2017 for unrelated crimes. Margaret then acted as treasurer and later facilitated Miguel’s resignation as statutory agent in 2020 while acting as his attorney-in-fact. As a result, state authorities notified LAC that its corporate charter would be canceled unless a new statutory agent was appointed; this cancellation became effective in February 2021 after no appointment occurred.
Margaret’s attorney provided affidavits stating that service of process on LAC followed required procedures for defunct entities under Ohio law (R.C. 1702.06(H)), noting there were no known officers or agents available for personal service. The trial court authorized service by publication after finding traditional methods unfeasible due to the club’s inactive status.
After proof of service by publication was filed, Margaret sought default judgment on August 16, 2022, which was granted by the trial court. Subsequently, Paschall and Dynasty Holdings LLC purchased rights under this judgment from Margaret in September 2022. Both Miguel and Margaret passed away in 2023; at her death, Margaret was reportedly the only remaining trustee.
In March 2023, LAC was revived as an organization with Isaac Flores appointed as statutory agent following recertification with state authorities. When Paschall and Dynasty Holdings commenced foreclosure proceedings on LAC’s real property based on the prior judgment, the revived club filed a motion under Civil Rule 60(B) seeking relief from that judgment—arguing insufficient notice and bad faith during service efforts.
Flores submitted an affidavit stating that LAC had ceased functioning in 2018 and those involved with its revival were unaware of earlier legal actions until foreclosure began. However, he did not identify specific individuals who should have been served nor provide evidence they held relevant positions at the time of Margaret’s complaint.
On June 24, 2025, the trial court denied LAC’s motion without holding a hearing. The court found “every appropriate and reasonable effort was made to notify any person claiming to be a part of or represent the interests of the defunct organization,” concluding “there was simply no one available involved with the entity to personally serve.” The trial court also determined that allegations regarding improper notice did not meet requirements for extraordinary relief under Civil Rule 60(B)(5), nor were they timely if considered under Civil Rule 60(B)(3), which requires motions within one year of judgment.
LAC appealed this decision on four grounds: whether extraordinary circumstances justified relief; whether its motion was timely; whether it presented meritorious defenses; and whether it deserved an evidentiary hearing. The appellate court reviewed these arguments but affirmed all aspects of the lower court’s ruling.
The opinion emphasized that allegations must establish all three prongs set forth in GTE Automatic Electric Inc.: existence of a meritorious defense or claim; entitlement to relief under one rule provision; and timeliness. It found LAC failed to substantiate each element sufficiently—particularly lacking clear evidence identifying parties who should have received notice or showing fraud upon the court itself rather than between parties.
The appellate panel also noted complications arising from both original plaintiffs’ deaths before resolution could occur at hearing stage—a factor limiting possible remedies even if relief were granted.
Attorneys identified include Lauren S. Purdy representing appellant Latin American Club of Defiance Ohio. Judges John R. Willamowski, William R. Zimmerman, and Juergen A. Waldick presided over case number 4-25-10.
Source: 2026Ohio1239_Urdiales_v_Latin_American_Club_of_Defiance_Ohio_Opinion_Ohio_Court_of_Appeals.pdf
